Where Do We Go From Here? Culture in Banking 2016, Next Steps and What is Coming.TODAY’S ROUGH  AND  TUMBLE  WORLD OF  BANKING!

The best way to predict the future is to create it.ABRAHAM LINCOLN

The IssuesReduced Branch Traffic◦ Branch Traffic down by 75%◦ Currently only less than 10% of our customers◦ In 3 – 5 it will be years less than 5%

Increased Regulatory Burden◦ More regulations in the last 7 years than the previous 20 years combined.

Struggling Economy

Ever increasing competition for the same clients

Downward pressure on earnings

The IssuesMergers and Acquisitions

Decreasing Employee Loyalty◦ 2011 Careerbuilder.com study – 76% looking for or would readily accept another

job.◦ 20% of employees are disengaged.◦ 52% fully engaged

“Under 35” motivated differently

“If we are to be better in the future we must disturb the present.”CATHERINE  BOOTH  – FOUNDER  OF  THE  SALVATION  ARMY

Why focus on culture?Gallup conducted a comparative study in 2014, concluding that companies with highly engaged teams outperformed their peers in the following areas:o147% higher earnings per shareo41% fewer quality defectso48% fewer safety incidentso65% less turnover (low-turnover organizations)o37% less absenteeism

What is “Culture”?In total to include:◦Attitudes◦ Customs◦Distinguishes one group of people from another. 

How we define it:◦Mission◦Vision◦Values◦Deeds

“The future depends on what we do in the present.”MAHATMA  GANDHI

Future Trends TECHNOLOGY

Branch Automation◦ Fewer tellers◦ More fluid functionality◦ Consumer - Internet based banker

interactions◦ Paperless loans etc…◦ Continued expansion of mobile banking◦ Much smaller more comfortable

branches

CUSTOMERS

Relationships◦ One bank > 31%◦ Three or more banks < 32%◦ Multiple relationships on the rise

Under 35 shop online before they buy◦ Willing to walk away based on 1st

impression

Social Media◦ Twitter◦ Facebook◦ Instagram

OpportunitiesRedefine positions and roles in branches – upgrade, consolidate, reposition◦ Teller◦ CSR◦ Lenders◦ Managers

Redefine Support Team Role◦ Ease of access◦ Increased automation◦ Increase support while reducing risk

OpportunitiesBig Banks are abandoning markets and customer segments◦ Consumer Lending◦ Small Business◦ Rural Markets

Reduced costs of automation for bank and customer products

Creative reward opportunities

Expand markets at reduced cost

Where do we start?Building your culture is not a “program”.Time for a reality Check. Understand who you are? ◦ Get feedback from customers◦ What do you do well?◦ What can you do to get even better?◦ Who are our customers?◦ Niche?

◦ Get feedback from team?◦ Anonymous employee surveys on management◦ Self assessment of management

Get a handle on who you are:◦ Define your culture◦ Mission◦ Vision◦ Values◦ Deed

◦ Culture is a non‐negotiable◦ Have an offsite with all of the management team◦ Feed them well◦ Have fun!

◦ Have a series of team meetings to begin the imbedding process.

◦ Define specifically what is unacceptable.◦ Stick to it!

Next StepsREDEFINE SUCCESS

Be careful what you recognize you will get it.◦ Leadership vs Management◦ How vs No◦ Accuracy vs Errors◦ Proactive vs Reactive◦ Positive vs Negative◦ Production vs Regulation◦ Constructive vs Criticize 

DEFINE A LEADERSHIP PROCESS

Identify 5 Key Actions of Leadership◦ Train them◦ Coach them◦ Positive accountability◦ Inspect what you expect◦ Non‐negotiable 

Define in word and deed◦ Plan to act◦ Act as planned

Next Steps ‐ ContinuedDEFINE INTERNAL SERVICE STANDARDS

What

When

How

How often

How quickly

Switch gears to proactive

Become problem solvers

DEFINE EXTERNAL PROACTIVE OUT REACH

Clients◦ Current◦ New◦ Prospective

Community◦ Civic Stewardship

◦ Time◦ Talent◦ Money

Next Steps ADDRESS PAY SCALE

Louisiana Living Wage Statistics: (Range based variances in market.)

Adult:  $10.03 – $11.04 per hour

Adult w/2 children: $22.68 – $24.68 per hour

2 Adults w/2 children: $22.18 – $24.06 per hour

AND FUNCTIONAL ROLES

Start combining jobs◦ Tellers/CSR’s/Loan Processors◦ Increase pay rate and save money – 2 for 1◦ Loan Support Multifunctional Roles◦ Deposit Support Multi‐functional roles

Address Hiring Practices

Must Do’sMEASURE IT

Identify Milestones◦ Measure them publically◦ Celebrate achievement

Identify Company KPI’s◦ Identify how each position contributes◦ Wrap a reward system around KPI’s◦ Identify individual KPI’s◦ Public Praise

Be careful what you track you will get it.

MONITOR IT

Inspect what you expect◦ Senior management must get back in the trenches.

◦ Attend department/branch meetings◦ Get out on calls◦ Ask – Show me questions

Be a coach◦ Teach◦ Set up a mentor system for up and comers

"Progress is impossible without change, and those who cannot change their minds cannot change anything."GEORGE  BERNARD  SHAW

More Must Do’sCREATE A REWARD SYSTEM

Formal Rewards◦ Incent productivity above goal◦ Financial reward for high performance◦ Time◦ Performance based bonuses

Informal Rewards◦ Handwritten notes◦ Gift cards for dinner◦ Tchotchkes◦ Feed the team

HIRE WISELY

Think out of the box◦ Look for entrepreneurs

Get managers actively involved◦ Recruiting new team members◦ Behavior based interviews

Identify willingness and ability

Final Must Do’s BE WILLING TO

Terminate destructive employees◦ Bullies◦ Vulgarity◦ Stand Still’s◦ Disrespectful

Have tough conversations with non‐performers

Change things up◦ If it is not working it needs to change

Build Bridges 

BE WILLING TO

Spend money on◦ Training◦ Pay◦ Bonuses◦ Technology◦ Uniforms (If it fits your culture.)◦ Fun

Change your management structure◦ Times are changing – flat is better◦ Everybody is a producer

Get a handle on the negativity surrounding “Compliance” (How vs No)◦ Newbies don’t know “The good ole days.”

Most of all – HAVE FUN!FORMAL FUN!

Organized Activities◦ Team building◦ Special Dress‐up days

◦ Sports◦ Holidays

◦ Contests◦ Production based◦ Team Based◦ Customer Service Based◦ WOW Walls

INFORMAL FUN!

Feed me Fridays◦ Customers◦ Employees

Surprise visits by executive management◦ Mission Money◦ Give a gift just because◦ Anniversary visits and gifts

Good News Friday

Welcome Mondays

Accept the challenges so that you may feel the exhilaration of victory.GENERAL  GEORGE  PATTON

Thank You!